Could El Paso County spend county hotel occupancy tax revenue on golf carts or general improvements at its golf course?

Texas AG Opinion JM-184: Hotel Tax for County Golf Course

Plain-English summary

JM-184 concluded that El Paso County could not use county hotel occupancy tax revenue to buy golf carts or finance general improvements for a county-operated golf course.

"The county of El Paso may not use revenues from a county hotel occupancy tax collected pursuant to article 2372d-8, V.T.C.S., to purchase golf carts or finance general improvements for a county-operated golf course."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1984/jm0184.pdf

The opinion first distinguished the city hotel tax cited in the request from the separate county tax that applied to El Paso County.

"Because it is a city tax, the hotel occupancy tax authorized by article 1269j-4.1 does not apply to El Paso County."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1984/jm0184.pdf

The county statute allowed revenue only for specified public improvements that served the purpose of attracting visitors and tourists. JM-184 read the list as focused on buildings and spectator facilities, not a county golf course.

"The county's disposition of hotel occupancy tax revenues will be authorized by the statute only if both of the following are true: (1) the revenues will be spent for a 'public improvement' such as those listed in section 6(a)(1); and (2) this improvement will serve the purpose of attracting conventions and tourists to the county."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1984/jm0184.pdf

Currency note

This opinion was issued in 1984. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Which hotel tax applied to El Paso County?

The opinion said article 2372d-8 authorized the county tax because El Paso met the statute's border-county and population criteria.

"El Paso is such a county and it is, therefore, authorized to levy a hotel occupancy tax."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1984/jm0184.pdf

What could county hotel-tax revenue fund?

The statute listed acquisition, construction, improvement, equipping, repair, operation, and maintenance of public improvements such as civic centers, auditoriums, exhibition halls, coliseums, and stadiums serving tourism.

"The revenue derived from any occupancy tax authorized or validated by this article may only be used for ... public improvements such as civic centers, civic center buildings, auditoriums, exhibition halls, coliseums, and stadiums."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1984/jm0184.pdf

Was promoting tourism by itself enough?

No. JM-184 required both a qualifying public improvement and a tourism-attraction purpose.

"Only if both of the following are true" could the spending qualify.
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1984/jm0184.pdf

Why did a golf course not count as a listed sports facility?

The opinion read "sports and other facilities" in context as arenas or pavilions drawing large numbers of ticket-buying spectators.

"The list of suggested projects ... contemplates 'sports and other facilities' which will draw large numbers of ticket-buying spectators to the county, such as arenas or pavilions where spectator events such as races or other competitive games could be held."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1984/jm0184.pdf

Could the county use the money for general improvements to an existing course even if it could not build a new course?

No. The opinion reasoned that if the statute did not allow construction of the county golf course, it also did not allow general improvements to the existing one.

"A county could not use revenues from a hotel occupancy tax to build a county golf course; accordingly, we conclude that the county may not use these revenues to finance general improvements to an existing county golf course."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1984/jm0184.pdf

Background and statutory framework

Texas had enacted a state hotel occupancy tax and separate local hotel taxes for cities and counties. The local laws limited revenue to specified projects.

"The remaining hotel occupancy taxes are levied by local governments: some by counties and some by cities. Each of these local tax laws authorizes the local government to use the revenues from the tax to finance certain specified county or city projects."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1984/jm0184.pdf

The state tax revenue went to the state treasury's general revenue fund.

"All revenues from this tax are deposited in the state treasury to the credit of the general revenue fund."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1984/jm0184.pdf

The county hotel-tax provision was titled "Improvements to Attract Visitors and Tourists," and section 6's spending specification was exclusive.

"The specification in section 6(a) of article 2372d-8 is exclusive."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1984/jm0184.pdf

Citations and references

• Article 2372d-8 supplied the county hotel-occupancy-tax authority and spending limits.

"The county hotel occupancy tax is authorized by article 2372d-8, V.T.C.S."
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1984/jm0184.pdf

• Section 6 limited use of the revenue to public improvements serving the tourism purpose.

"The revenue derived from any occupancy tax authorized or validated by this article may only be used for" the listed public improvements.
Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1984/jm0184.pdf

Source

• Landing page: https://www.texasattorneygeneral.gov/opinions/jim-mattox/jm-0184
• Original PDF: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1984/jm0184.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain. The linked PDF is authoritative.

The Attormy General of Texas hly 26, 1984
JIM MATTOX
Attorney General

  Supreme Court Building              Honorable Gary Thorlpson               Opinion No. .JM-184

P. 0. BOX 12546
Chairman
Aus!in, TX. 76711. 2546 county Affairs Cora1ittee Re: Whether revenues received
5121475.2501
Texas House of Representatives from s hotel occupancy tax may Telex 9101674-1367
Telecopier 5121475-0266
P. 0. Box 2910
be used to make improvements
Austin, Texas 70;69
to a county golf course
714 Jackson, Suite 700 Dear Representati!e:
Thompson:
Dallas, TX. 75202.4506
2141742-6944
You have asku whether article 1269j-4.1, V.T.C.S., authorizes El Paso County to UX: revenues from a hotel occupancy tax to purchase 4624 Alberta Ave.. Suite 160 golf carts or to :iinancegeneral Improvements for a county-operated El Paso. TX. 799052793 golf course. We first conclude that, because it is a city tax, the
9151533.34a4
hotel occupancy tic:authorized by article 12693-4.1 does not apply to
El Paso County; mc’reover,we conclude that, although there is a county
,‘.lM)l Texas, Suite 700 hotel occupancy tBK that does apply to El Paso County. it does not
Houston, TX. 77002-3111 authorize the county to use revenues from the tax to purchase golf
7131223.5666
carts or to finanu general improvements for its golf course.

The legislatcre has enacted several hotel occupancy taxes.
606 Broadway. Suite 312
Lubbock, TX. 79401-3479
Section 156.051 of the Tax Code was enacted in 1959; it provides for a
6061747.5236
state hotel occupsrcy tax. See Acts 1959, 56th Leg., 3rd C.S., ch. 1.
at 187. All reunues frozhis tax are deposited in the state treasury to the credit of the general revenue fund. Tax Code 4309 N. Tenth, Suite S
1156.251. The remaining hotel occupancy taxes are levied by local McAllen, TX. 76501-1665
5121662.4547
government6 : soma by counties and some by cities. Each of these
local tax laws authorizes the local government to use the revenues from the tax to finance certain specified county or city projects.
*Oil Main Plaza, Suite 400
San Antonio, TX. 76205-2797
512,225.4191
The county hcsteloccupancy tax is authorized by artf,cle2372d-8, V.T.C.S. Section : of article 2372d-8 defines the counties to which the article applies:
An Equal OPpOrtUnityl
Affirmative Action Employer
Section 1. This article applies only to
counties with a population of more than 2.000.000, according to the most recent federal census and to counties that border the Republic of Mexico with a population of more than 90,000, according to the most re:,:nt federal census, excluding counties which :,ntain three or lllOlX cities with populations of more than 17,500, according to the most recent federal census.
.

Honorable Gary Thompson - :?.age
2 (~~-184)

‘I

El Paso is such a county and it is, therefore, authorized to levy a hotel occupancy tax.

This office has prevL)usly discussed the proper disposition of revenues from a city's tctel occupancy tax. In Attorney General Opinion H-209 (1974)) the :ity of Temple asked whether it could use revenues collected under a:ri:icle 1269j-4.1 to contract with the Temple
Cultural Activities Center for the provision of cultural services to the community. The opinion deemed the use to be outside of those specifically permitted by the statute:

However, we da)not believe the permissible uses of occupancy tax revenues include general efforts to support the acts. It may be that the programs you describe, in certain situations, could have the ancillary uffect of contributing to a "solicitation ar.i operating program to attract conventions and "isitors," but as you state in YOU? inquiry, their main purpose is the development of programs in the arts for the general public of central Texas. Before Hotel Occupancy Tax funds could be used to purchase services, activ:.ties or programs for the development of l:he arts, we believe they would -_ need to be directly related to the attraction of conventions or to~lrists.

Attorney General Opinion l&Z:09 (1974). The county hotel occupancy tax was intended to raise re'r,!nuesto support projects that encourage conventions and tourism. !ection 2 of article 2372d-8 is. in fact, titled "Improvements to Attract Visitors and Tourists." Section 6 of article 2372d-8 specifies hc~wrevenues from the county hotel occupancy tax may be used. The specj.f'ication in section 6(a) of article 2372d-8 is exclusive:

Sec. 6. (a) The revenue derived from any occupancy tax authorized or validated by this article may only le used for:

(1) the acqllisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation, and maintenance of public improvements such as civic centers, civic center buildings, aui.i toriums, exhibition halls, coliseums, and ctadiums, including sports and other facilities (either or all) that serve the purpose of attrac,tingvisitors and tourists to the county . . . . (Emphasis added).
Honorable Gary Thompson - ?,ige3 (~~-184)

According to section 6(a), the county's disposition of hotel occupancy tax revenues will be authorized by the statute only if both of the following are true! (1) the revenues will be spent for a "public improvement" such as those listed in section 6(a)(l); and (2) this improvement will serve the purpose of attracting conventions and tourists to the county. I.1deciding whether general improvements to a county golf course may be :lassified as "public improvements," we must invoke standard rules of Etatutory construction. The rule of ejusdem generis applies to enumer;.tions-- lists of specific terms which are preceded or followed by a Inore general term associated with the list of specifics. The scope o:: the general term, "public improvements," is therefore defined by 1:llenon-exhaustive though limiting list of terms which follow i~t. --_ Sot!Amplifone Corporation v. Cameron County, 577 S.W.2d 567 (Tex. Civ. .Y)p.- Corpus Christi 1979, no writ).

We note that each of the public improvements listed in section
6(a)(l) is a building. lhe only phrase in the list which could conceivably embrace a county golf course is "stadiums, including sports and other facilities." However, "the cardinal rule of statutory construction ie to ascertain the legislative intent in enacting the statute." FsJlk v. State, 608 S.W.2d 625 (Tex. Grim. APP. 1980). The clear G?ent of article 2372d-8 is to raise local revenues for projects whic:liwill attract visitors and tourists. The list of suggested projec,:;;in section 6(a)(l) of article 2372d-8 contemplates "sports and other facilitj~es" which will draw large numbers of ticket- buying spectators to the county, a arenas or pavilions where spectator pzvents such as races or other competitive games could be held. A colurtygolf course is not such a place. We conclude, therefore, that .Icounty could not use revenues from a hotel occupancy tax to build a ccunty golf course; accordingly, we conclude that the county may not use these revenues to finance general improvements to an existin::county golf course.

SUMMARY

The county of 'clPaso may not use revenues from a county hotel o':b:upancy tax collected pursuant to article 2372-8, L.T.C.S., to purchase golf carts or finance genel,al improvements for a county- operated golf course.

J AVery truly yours

JIM
A
MATTOX
Attorney General of Texas

TOM GREEN
First Assistant Attorney G,nleral
Honorable Gary Thompson - I?;ige
4 (JM-184)

DAVID R. RICBARDS
Executive Assistant Attornq General

Prepared by Rick Gilpin
Assistant Attorney General

APPROVED:
OPINION COMMITTEE

Rick Gllpin, Chairman
David Brooks
Colin Carl
Susan Garrison
Jim noellinger
Nancy Sutton

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